[{"_1":2,"_86":-5,"_87":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6518099,"mediaKeyId","5399253-26fde0951b562608bc10daa76391a543","parentId",5399253,"title","State Auditor briefs Tacoma on 2023 accountability audit; payroll timekeeping issues flagged and 2024 single‑audit programs announced","audioSeconds",2200,"startMs",1607000,"endMs",3807000,"viewUrl","/Search/View?dp=1&key=5399253-26fde0951b562608bc10daa76391a543&start=1607&end=3807","thumbnailUrl","https://assets.pipeline.soar.com/5399253-26fde0951b562608bc10daa76391a543/thumbnail_1607000.jpg","articleUrl","/articles/6518099/Tacoma/Pierce-County/Washington/State-Auditor-briefs-Tacoma-on-2023-accountability-audit-payroll-timekeeping-issues-flagged-and-2024-singleaudit-programs-announced","mediaUrl","https://secure.pipeline.soar.com/6518099-872d07cf2b2bb12a2ef18f57b9abb42f/orig.mp4?Expires=1775147145&Signature=SEaeilrXDw~opGllUbzYRxr8l6SWgLrsDWwH7-QLg~Vaj2cZveCWdj~gfHb~IbuesLtCKtgltQzSg3qIl8DYxKb8~MM9MNicGV-Xw6vzd4AepGxeaoNevgE5a0fgW8IqtJcGgkCRm1RY8plVkbJW1yt2F0pBbx6Fg0u9ILz6vMgKbm2Ujuk1vbvs7Rdfw4S2czq3-~M5OVudr70hZdv27fcFKeqGCpFoBrcr5Z57NmdrLe0qPq5z8KI5zErQQkF4jr7dU2XUsXmrtXGBp3DnrShykvB6ZsYXk2Y3Vs73FT03Bsx4W0jlIXCqpW6CaD7eWrRlRQbcZvim39IFDLiBzg__&Key-Pair-Id=KUT5TJCACFTXG","author","Tacoma","date","2025-07-15T00:00:00Z","article","Wendy Choi, assistant director of local audit for the Washington State Auditor’s Office (SAO), and audit leads Judy Lee and Jason Starr briefed the Government Performance Finance Committee and Audit Advisory Board on July 15 about the city’s fiscal‑year 2023 accountability audit exit conference and opened the 2024 federal single‑audit entrance conference.

Audit results for 2023
SAO auditors said they selected audit areas based on risk and concluded that, for the areas examined, the city “complied in all material respects” and maintained controls to safeguard public funds. The accountability audit covered a range of departments and processes, including payroll and timekeeping for Tacoma Public Utilities and Public Works, the municipal court’s enterprise justice conversion, procurement and cash‑receiving for Tacoma Rail, environmental services operations (wastewater, solid waste, surface water), public works contracts and deposits, IT controls, planning and development permit deposits, police seized‑funds tracking, and neighborhood and community‑services tax compliance.

Payroll timekeeping and reported losses
Jason Starr and Judy Lee told the committee that three suspected or known losses were reported to the SAO during the audit period; SAO’s procedures found a common trend of inadequate supervisor monitoring that created the potential for employees to be paid for hours not worked. Two of the reported instances in the audited period were determined to involve employees paid for hours not worked; a separate previously reported 2022 instance had been addressed by the department, SAO said.

SAO’s management‑letter recommendations and next steps
The SAO said it communicated recommendations to management in a non‑published management letter addressing payroll timekeeping: provide supervisor training, update payroll policies, and ensure supervisors have appropriate resources to monitor and approve time. The SAO emphasized that management letters are public records referenced in the published report but are not printed in full in the published audit report.

Federal single‑audit entrance and major programs selected
Choi and Starr described the single‑audit process (federal fiscal year 2024) required when a government expends more than $750,000 in federal funds. The SAO said it will test compliance with federal requirements and internal controls for selected federal awards and report results to federal authorities.

Programs selected for the 2024 single audit (illustrative list presented by auditors): community development block grants (including COVID‑era CDBG allocations), the Edward Byrne Memorial Justice Assistance Grant, and Coronavirus State and Local Fiscal Recovery Funds. Auditors said those programs account for about 58% of the city’s federal expenditures in the covered year and that program selection follows federal planning procedures and risk assessments.

Audit logistics and publication
SAO staff told the committee the 2023 accountability audit engagement cost remained within the estimate, in part due to timely city responses. SAO said the city’s 2023 report would be published on the SAO website in the next one to two weeks and reminded city staff of the requirement to immediately report any suspected loss of public funds to the SAO’s office under Washington state law.

Questions from board members and staff
Board and council members asked how audits treat internal policies versus legal compliance; SAO staff said auditors review government policies and then test whether controls work as designed, and the office will flag issues that appear to be outside legal authority for city legal counsel. Members also asked whether enterprise systems such as SAP will standardize timekeeping across varied departmental work patterns; SAO and city staff replied that one‑size solutions do not always fit field work patterns and that different divisions may legitimately use different timekeeping approaches, but adequate supervisory review and segregation of duties remain required.

Timing and follow up
SAO staff said the financial statement audit for calendar year 2024 was complete and that the federal single audit will proceed with a target federal deadline in the fall; auditors expected to return to present single‑audit exit results later in the year.

The committee did not take formal action on the audit presentations; SAO staff thanked city liaisons Susan and Polly for timeliness and cooperation during the engagement.","mediaType","Video","parentTitle","Tacoma - 20250701 Government Performance Finance Committee - Jul 15, 2025","oneSentenceSummary","Wendy Choi of the Washington State Auditor’s Office and audit leads Judy Lee and Jason Starr told Tacoma’s Government Performance Finance Committee on July 15 that the 2023 accountability audit found compliance in the areas tested but identified payroll timekeeping weaknesses in a management letter after three reported suspected losses.","taxTitle","Tacoma, Pierce County, Washington","taxId",2675,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":44,"_47":80,"_49":81,"_51":82,"_53":83,"_55":56,"_57":58,"_59":84,"_61":62,"_63":64,"_65":85,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6518104,"Tacoma utility AMI rollout nearing close; forecast comes in slightly under original budget, 535 customers opted out",1385,222000,"/Search/View?dp=1&key=5399253-26fde0951b562608bc10daa76391a543&start=222&end=1607","https://assets.pipeline.soar.com/5399253-26fde0951b562608bc10daa76391a543/thumbnail_222000.jpg","/articles/6518104/Tacoma/Pierce-County/Washington/Tacoma-utility-AMI-rollout-nearing-close-forecast-comes-in-slightly-under-original-budget-535-customers-opted-out","https://secure.pipeline.soar.com/6518104-45fb0ec3f048be366d010423b5792af4/orig.mp4?Expires=1775147145&Signature=H~-E4QZJrnjZ8iRVdpIaeDNt-BAgpAVF8nQ6uvqVUVWoo2jIx5YxcUKh6yQKApc-rBXpvPRyi2Y0qOkvbCP83MlvvOr4Xw258yMUwBolWAf8loHMEXi77kEGEoWzbHCp9SvVcnWnxnMCsxCVcVPdOf9BXnPggkO92BpXRM4maKmQyufk3mIGmJA4N1uD3mCKnnedm7kAyigKf0jQ-EcgAlJxibCqntLn9tbPfsjvtpFWGnIvhKdd380rBCubxsogsLZP3rjoIpr05qWzaXG813gilmlYV5jTG-GJ2~5NL1Z-cUFrfofvQUY96b72Iwq71zfUQvqDjFNtSfanSLTY5A__&Key-Pair-Id=KUT5TJCACFTXG","Corey Bediens, technology manager at Utility Technology Services and acting Advanced Metering Infrastructure (AMI) lead, told the Government Performance Finance Committee and Audit Advisory Board on July 15 that the AMI program will be substantially complete by the end of the year and that the city’s forecasted final cost is below the originally authorized $81.7 million.

“The goal was to exchange nearly 300,000 meters, install an AMI communications network, base stations and antennas, to install create a meter data management system, integrate with SAP, transition to monthly billing, and enable a customer portal,” Bediens said. He told the committee the program’s original schedule (2017–2022) slipped to 2025 largely because of global chip shortages and COVID‑era supply‑chain disruptions.

Why it matters: AMI touches every Tacoma utility customer and enables monthly billing, automated outage detection for faster response, and water leak detection that utilities staff said is already prompting customer repairs and conservation. That can change operating and customer‑service costs across the utility.

Key facts and outcomes
- Scope: replace about 300,000 electric and water meters, install communications infrastructure, and integrate meter data with the city’s SAP financial system and a customer portal. (Presenter: Corey Bediens.)
- Schedule: original target 2017–2022; delayed by supply‑chain issues and staff/contractor turnover; presenters said the program is expected to finish by the end of the calendar year. (Presenter: Bediens.)
- Budget: original baseline $81.7 million. Presenters said the forecasted final cost is roughly $80.5 million, below the original authorization after renegotiations and grant funding. “We started with a budget of 81,700,000…and our current forecast is below our original budget value,” Bediens said.
- Opt‑outs: presenters reported 535 customers have formally opted out of receiving an AMI meter; a small number (12 applicants at the time of the presentation) were still in process. Staff said customers who opt out receive manual monthly reads and pay an additional fee for that service. (Presenter: Bediens.)
- Grants: presenters said the city secured grants on the water side, including a $2,000,000 award that reduced net program cost pressure. (Presenter: Bediens.)

Customer benefits and operations
Presenters listed customer benefits that staff said were delivered: monthly billing, outage detection for faster restoration, improved leak detection and continuous‑use notifications on water accounts. Kalyan Kakani, chief information officer and UTS section manager, said the water side has sent more than 45,000 letters to customers notifying them of continuous usage that may indicate leaks. “Water is able to detect leaks…they’ve sent out over 45,000 letters, notifying customers of continuous usage,” Kakani said.

Utility business case and monitoring
Staff described a 20‑year business‑case projection for net present value (NPV) benefits. Bediens said roughly 70% of the forecasted value came from labor reductions and reduced truck rolls/outages, categories the city considers “on target”; other benefit categories remain under monitoring because longer observation is required.

Assets and replacement schedule
Presenters said the electric solid‑state meters have an expected lifespan of roughly 10–15 years (electric meters installed recently were described as ~15 years), while water meters and their communications modules are expected to last about 20 years (battery‑limited lifespan). Bediens said maintenance and future replacement planning will be required as batteries and electronics age.

Public comment and council questions
Public commenter Kit Burns told the committee he has followed the AMI rollout for years and said he opposed the program; he also noted he kept a standard (non‑AMI) meter at his property. “I was against the program… I did end up I still have my standard meter,” Burns said during the public comment period. A resident identified as Constance praised the leak‑detection letters: she told the committee the notification helped her household discover and repair a leak that otherwise would have appeared as a very large bill. “Before, you didn’t know you had a leak until you got your bill… now it’s been helpful to our family,” Constance said.

Council members asked how the project came in under budget despite a three‑year schedule extension; staff said their approach combined contract renegotiations, active vendor management, staff continuity where possible and targeted grant pursuit. “We were willing to take on risk in terms of renegotiating contracts and partnering with our vendors…we also pursued grants on the water side,” Bediens said.

Remaining work
Presenters said a small number of final meter installations remain; staff are taking some work in‑house to complete outstanding installations and to offboard vendors. One of the final vendor meter installs was shown in photos as occurring in North Tacoma.

Next steps and follow‑up
Staff said the city will continue to monitor expected benefits over the next years (the business case is a 20‑year projection), revisit the manual‑read fee for opt‑out customers to ensure it reflects ongoing service costs, and coordinate AMI meter data with the city’s SAP financial system and customer portal as those programs continue to come online.

The committee did not take any formal action on the presentation.","Corey Bediens, technology manager at Utility Technology Services and acting AMI lead, told the Government Performance Finance Committee and Audit Advisory Board on July 15 that the city’s Advanced Metering Infrastructure program is expected to finish by the end of the year, that the project’s forecasted final cost is below the originally authorized $81.7 million, and that 535 customers have opted out of AMI meters.","actionData","errors"]

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State Auditor briefs Tacoma on 2023 accountability audit; payroll timekeeping issues flagged and 2024 single‑audit programs announced

Tacoma utility AMI rollout nearing close; forecast comes in slightly under original budget, 535 customers opted out